Exam 7: Market Feasibility Study

_______ is a crowdfunding site where you put together a project and look for funding.If the project succeeds in reaching its funding goal,all backers' credit cards are charged.If the project falls short,no one is charged.

Free

(Multiple Choice)

4.9/5

(31)

Question 1

Correct Answer:

Verified

Explain the concept of "bootstrapping".

Free

(Essay)

4.8/5

(31)

Question 2

Correct Answer:

Verified

One concept actively promoted for many new entrepreneurs is the concept of "bootstrap financing" or bootstrapping.Bootstrapping is essentially looking for highly creative ways of acquiring the resources you need to get your business off the ground without "kick starting" the business with external capital by borrowing money or raising equity from traditional financing sources.It means being as frugal as possible so that your business can get going on as little cash as possible.

Debt financing involves the sale of _,while equity financing involves the sale of ___.

Free

(Multiple Choice)

5.0/5

(28)

Question 3

Correct Answer:

Verified

The average minimum investment of a typical "venture capitalist" is:

(Multiple Choice)

4.9/5

(36)

Question 4

Bank loans,both operating and term loans,are demand loans so that regardless of the term,the bank can and will demand they be paid back if it feels the company is getting into trouble.

(True/False)

4.9/5

(33)

Question 5

Debt financing is when a firm raises money by selling all of the following,except:

(Multiple Choice)

4.9/5

(36)

Question 6

Providers of equity capital do not expect to receive interest payments but rather hope to share in the future profits of the business.

(True/False)

4.8/5

(37)

Question 7

What are the 5 C's of Credit?

(Essay)

4.9/5

(34)

Question 8

The ______ of the loan is the total amount of money you have been loaned.

(Multiple Choice)

4.8/5

(35)

Question 9

An operating loan is useful for all of the following,except:

(Multiple Choice)

4.9/5

(37)

Question 10

In which of the following exit strategies might the investor's shares be repurchased by the company (sometimes in the form of a put option or a retraction clause)?

(Multiple Choice)

4.8/5

(37)

Question 11

Under the Canada Small Business Financing Act,new and existing businesses with gross revenues _______ may be eligible to obtain term loans from chartered banks and have the loan partially guaranteed by the federal government.

(Multiple Choice)

4.9/5

(39)

Question 12

How can an IPO be used as an exit strategy?

(Essay)

4.9/5

(29)

Question 13

The problem with using debt to finance business activities is that it can be difficult to service and a burden on your cash flows.

(True/False)

4.7/5

(30)

Question 14

As of April 1,2013,the HST rate in Ontario is:

(Multiple Choice)

4.9/5

(36)

Question 15

It is estimated that between 75 and 85 percent of new startups use some form of bootstrapping to help finance themselves.

(True/False)

4.8/5

(26)

Question 16

High-risk ventures are more likely to secure debt financing than equity financing.

(True/False)

4.9/5

(27)

Question 17

The interest that a company pays to its bondholders is tax deductible.

(True/False)

4.7/5

(30)

Question 18

Describe some of the advantages of financing company activities with equity.

(Essay)

5.0/5

(32)

Question 19

In which of the following exit strategies is there an outright sale of the company in which the investor's shares would be sold as part of the sale of the company to a third-party?

(Multiple Choice)

4.7/5

(34)

Question 20

Showing 1 - 20 of 42

_______ is a crowdfunding site where you put together a project and look for funding.If the project succeeds in reaching its funding goal,all backers' credit cards are charged.If the project falls short,no one is charged.

Explain the concept of "bootstrapping".

Debt financing involves the sale of _,while equity financing involves the sale of ___.

The average minimum investment of a typical "venture capitalist" is:

Bank loans,both operating and term loans,are demand loans so that regardless of the term,the bank can and will demand they be paid back if it feels the company is getting into trouble.

Debt financing is when a firm raises money by selling all of the following,except:

Providers of equity capital do not expect to receive interest payments but rather hope to share in the future profits of the business.

What are the 5 C's of Credit?

The ______ of the loan is the total amount of money you have been loaned.

An operating loan is useful for all of the following,except:

In which of the following exit strategies might the investor's shares be repurchased by the company (sometimes in the form of a put option or a retraction clause)?

Under the Canada Small Business Financing Act,new and existing businesses with gross revenues _______ may be eligible to obtain term loans from chartered banks and have the loan partially guaranteed by the federal government.

How can an IPO be used as an exit strategy?

The problem with using debt to finance business activities is that it can be difficult to service and a burden on your cash flows.

As of April 1,2013,the HST rate in Ontario is:

It is estimated that between 75 and 85 percent of new startups use some form of bootstrapping to help finance themselves.

High-risk ventures are more likely to secure debt financing than equity financing.

The interest that a company pays to its bondholders is tax deductible.

Describe some of the advantages of financing company activities with equity.

In which of the following exit strategies is there an outright sale of the company in which the investor's shares would be sold as part of the sale of the company to a third-party?

Buying a Franchise

Marketing

Financing Your Business and Accounting Practices

Legal Considerations

Business Plans

Cost and Profitability Assessment

Exploring Business Ideas and Opportunities

Assessing Your Potential for an Entrepreneurial Career

Buying a Business

Sales

Filters

Exam 7: Market Feasibility Study

_______ is a crowdfunding site where you put together a project and look for funding.If the project succeeds in reaching its funding goal,all backers' credit cards are charged.If the project falls short,no one is charged.

Explain the concept of "bootstrapping".

Debt financing involves the sale of _____,while equity financing involves the sale of _______.

The average minimum investment of a typical "venture capitalist" is:

Bank loans,both operating and term loans,are demand loans so that regardless of the term,the bank can and will demand they be paid back if it feels the company is getting into trouble.

Debt financing is when a firm raises money by selling all of the following,except:

Providers of equity capital do not expect to receive interest payments but rather hope to share in the future profits of the business.

What are the 5 C's of Credit?

The ______ of the loan is the total amount of money you have been loaned.

An operating loan is useful for all of the following,except:

In which of the following exit strategies might the investor's shares be repurchased by the company (sometimes in the form of a put option or a retraction clause)?

Under the Canada Small Business Financing Act,new and existing businesses with gross revenues _______ may be eligible to obtain term loans from chartered banks and have the loan partially guaranteed by the federal government.

How can an IPO be used as an exit strategy?

The problem with using debt to finance business activities is that it can be difficult to service and a burden on your cash flows.

As of April 1,2013,the HST rate in Ontario is:

It is estimated that between 75 and 85 percent of new startups use some form of bootstrapping to help finance themselves.

High-risk ventures are more likely to secure debt financing than equity financing.

The interest that a company pays to its bondholders is tax deductible.

Describe some of the advantages of financing company activities with equity.

In which of the following exit strategies is there an outright sale of the company in which the investor's shares would be sold as part of the sale of the company to a third-party?

Buying a Franchise

Marketing

Financing Your Business and Accounting Practices

Legal Considerations

Business Plans

Cost and Profitability Assessment

Exploring Business Ideas and Opportunities

Assessing Your Potential for an Entrepreneurial Career

Buying a Business

Sales

Filters

Debt financing involves the sale of _,while equity financing involves the sale of ___.